West Midland companies plan growth despite downturn’s effects – survey

Oct 27 2009 by Anna Blackaby, Birmingham Post

Companies in the West Midlands are preparing for growth despite believing the effects of the downturn will last until the latter part of 2010 or into 2011.

The ICAEW Enterprise Survey 2009, in its thirteenth year, also reveals that more than half of companies say that the regulatory and taxation environment in the UK is still not business friendly.

Three-quarters of West Midlands businesses expect the downturn to have a negative impact on their business in 2009 with 42 per cent expecting the recession to affect them for another one to two years.

But, despite the predictions, most businesses in the region still have plans to increase turnover in the next two years although these growth expectations have generally been scaled back.

The majority of West Midlands businesses – 72 per cent – are planning annual turnover growth over the next two years targeting growth rates of 10.7 per cent per annum on average.

Birmingham and West Midlands Society of Chartered Accountants president Sally Beavan used the publication of the survey to call for red tape to be cut back.

She said: “Companies in the West Midlands more than ever need a supportive business environment.

“As well as less regulatory and taxation legislation, there needs to be proper consultations on any proposed changes and enough time and support for businesses to get to grips with it all. This has not been the case in the past. At a time when there is so much reliance on business to help stabilise and grow the economy after recession these results should send serious alarm bells.”

The full ICAEW UK Enterprise Survey Report 2009 can be accessed at www.icaew.com/enterprise